Avelios Closes Second Project: Seydelstraße 14, Berlin
Avelios has provided mezzanine finance to a European real estate developer, enabling it to secure a premium inner-city office development in Seydelstraße 14, Berlin, Germany.
The developer had secured a €17m senior bank loan, but still required a mezzanine tranche of €7m to complete the transaction.
Despite the challenging financial climate created by the Covid 19 crisis, Avelios was able to successfully provide the loan, seeing the transaction through to completion.
Guido Lang, Chief Investment Officer for Avelios said: “We are delighted to work with such a well-established real estate developer on this transaction. Utilising our legacy insights on the Berlin market, we were able to see the long-term potential of this site and offer mezzanine finance to enable the acquisition of this project.”
The development site is located in Seydelstraße, within the sought-after Mitte district of Central Berlin. It boasts excellent connections to local public transport lines (subway line U2 and bus route 248) and is easily accessed from both of Berlin’s airports (both within 30 minutes travel time).
The property is also in the immediate vicinity of the Spittelmarkt, the Axel Springer headquarters, the Gendarmenmarkt, and the Humboldtforum, featuring the new building of the Berlin Palace and the Museum Island.
The site is on a 1100 m² plot and the development will create a new, architecturally prominent office building with 3070 m² GFA and 2,690m² of rentable space, generating a target income of €1.07m p.a. (€32psm, plus income from 20 parking spaces). Construction is due for completion in Q2 2023.